Do You Need A Merchant Account?

Deciding when to get your own merchant account for internet sales can be a confusing and expensive venture. If you have a small to medium sized business and only sell a small amount of products then having your own merchant account may not be the answer for you. Some of the costs involved include.

Monthly fees. Anywhere between $25-$50 for statements and minimum fees.

Per transaction and charges fees. Usually between 2%-3.5 % in fees and .30-.50 per transaction.

Gateway fees. $10-$30 per month

SSL certificate. Can be as much as $250

Shopping cart fee or software purchase. Monthly can range $20-$70 and software purchase can be as much as $1400.

In addition to the cost is the technical aspect of setting up your site to use a shopping cart and real-time processing. Not all gateways, merchant accounts and shopping carts play well together. You must make sure that each can work with each other. Plus be prepared to properly set up your web server to use all this nice technical information the accounts give you.

Now, if you are a larger business or do a lot of sales each month perhaps your own merchant account is the answer for you. It can save you money in the long run. But if you are just starting out with an online business, then a third party merchant may be the answer for you. Third party merchants handle all the background details, pay the monthly fees, assume the risks of fraud and charge backs, and handle all the secure shopping your customers will expect when shopping online. While the monthly fees may be a bit higher, there usually isn't a set up charge, gateway fees, SSL charges and shopping cart set up. Depending on the service you choose, they can give you simple HTML code to add to your site or allow you to use "buy buttons" or both. Fees range anywhere from 5% to 13.5%. Some companies charge a set up fee and a per transaction fee.

Then there is always Paypal. A useful service for new comers to the online payment arena but it has its drawbacks. With Paypal:

Your customer must set up an account with them

They can FREEZE your account

They can set limits on monthly transactions

I suggest you explore all your options and decide what is best for you financially and technically. A little research online can save you money and time in the long run.

About The Author

Jim Hoffman is the co-founder of Inet Goodies. An internet resource group, focusing on SEO, Hosting, Billing solutions and Traffic.

http://seogoodies.com

admin@inetgoodies.com

In The News:

pen paper and inkwell


cat break through


Cyber Banking

The use of electronic cash as a means of transacting... Read More

The Ecommerce Business Plan

Simply put, business plans can make or break your business.... Read More

Turn Your Rusty Junk Into eBay Gold

Often times people to stop to realize the income potential... Read More

Select a Niche Market for Ecommerce

Choosing a carefully pinpointed niche market should be one of... Read More

6 Steps to Attracting Black Customers Online

by Jamila White, "The E-Commerce Diva"In the rush to keep... Read More

Increasing E-commerce Website Sales

With consumers purchasing billions of dollars of merchandise online each... Read More

When Do You Ask For A Refund?

Have you ever asked to have your money refunded after... Read More

Bringing the World to Your Door

According to Internet.com, by the year 2008 nearly 30% of... Read More

Shopping from Your Cell Phone with Froogle Wireless

Many surfers already know about Froogle, Google's shopping portal that... Read More

E-commerce Software That Will Safeguard Your Business against Fraud

Fraud is a huge issue when it comes to the... Read More

Online Payments Make It Easy For Your Customers To Buy

In the last column we discussed the process of credit... Read More

Tell Them Whats in The Can!

What does 'the can' mean? Well, its literal meaning relates... Read More

Ecommerce - Boost Your Business ROI

Did you know that over 90% of all online orders... Read More

Credit Card Merchant Account Basics

Knowing which credit card merchant account to get can be... Read More

A Tale of Two Revolutions - Ecommerce: A Historical Perspective

The World As It Then WasThe dynamic economic growth of... Read More

Intranet - The Benefits Realisation Plan

The Millennium ExperienceA successful project is one that delivers on-spec... Read More

Alternative E-Commerce Solutions

Over the past several years, the Internet has emerged as... Read More

eCommerce Software Solutions

All of the long, grueling nights and an unknown number... Read More

Short Story: The Benefits of Shopping Online

Maria's new lifestyle: Short story about the benefits shopping on... Read More

3 Powerful Concepts That Climb Marketing Mountains

You have probably heard many times how you should offer... Read More

Online Credit Card Processing - How to Accept Credit Cards - Ecommerce 101

Back in 1998 (through 2000 or so), I worked for... Read More

Creating The Perfect Ecommerce Website

If you're thinking of jumping on the bandwagon and going... Read More

Free Competition Analysis for E-Commerce Startup

For anyone who has completed research regarding e-commerce, there are... Read More

Saving Money On Your E-commerce Site

After building and transferring many e-commerce sites it still amazes... Read More

What Are The Barriers of Implementing E-Commerce Solutions

What is electronic commerce?"Electronic commerce is about doing business electronically.... Read More

Cheap Cigarettes, Discount Tobacco and Cigars Online - Is It Legal?

Many people online today still believe that buying tobacco products... Read More

Website Marketing: 10 Resourceful Things You Can Do With A Product That Doesnt Sell

Do you have any product that has not been moving... Read More

How To Sell Websites Fast !

This article will explain in depth the steps needed to... Read More

Online Merchant Account - Costs and Alternatives

Merchant Account BasicsA Merchant Account is a commercial bank account... Read More

How To Sell Your Products Online?

E-commerce is gaining pace! Research firm eMarketer predicts that 2003... Read More

Distinguishing Features of E-Commerce

E-commerce offers customers the chance to eliminate many stages in... Read More

How To Eliminate Credit Card Refunds From Digital Thieves

Can you encounter the number of times where a Credit... Read More

Is ECommerce Right for Our Business?

If your business features products or services for sale, undoubtedly... Read More